INDEPENDENCE DAY: Focus on inclusiveness, leave no one behind

COMMENT | THE INDEPENDENT | The Uganda Retirement Benefits Regulatory Authority (URBRA) joins all citizens of Uganda to commemorate our 61^st Independence Day under the theme: Sustaining a united and progressive Uganda: Harnessing our future as a free nation.

Since its establishment upon the enactment of the URBRA Act 2011, the Authority has focused on setting up a robust regulatory and supervisory environment to enable the development of the retirement benefits sector. With a more streamlined and standardized context, the sector has attained key achievements in all aspects.

These achievements signify a future where URBRA and the retirement benefits sector will continue playing a significant role in the development of the country. However, for such a future to benefit all Ugandans there is an urgent need to aim for inclusiveness and adequacy of retirement benefits arrangements.

While the number of people saving for retirement has grown, over 80% of the working population is not covered by existing retirement benefits arrangements, and therefore excluded from the advantages presented by a well-regulated, and structured sector. Even those who are covered experience some form of exclusion. For example, under the mandatory NSSF, more than 80% of members have account balances of less than 10 million shillings.

Apart from the Public Service Pension Scheme, all current retirement benefits schemes provide a lumpsum payout. Statistics show that most retirees who get a lumpsum payout, dissipate their savings within the first three to five years. For those with measly balances, adequacy is simply inconceivable.

As the theme for Independence Day suggests, Uganda is keen on sustaining progress and harnessing the future as a free nation. But the desired future should be inclusive, leaving no one behind. A desirable future is where all retirees enjoy adequate retirement benefits and pensions.

To address the challenges that impede inclusiveness and adequacy of retirement benefits, URBRA has organized a two-day symposium – 28^th -29^th November under the theme: SUSTAINABLE PENSION INCLUSION IN AFRICA. Apart from triggering discussion on the factors influencing inclusion and adequacy trends, the symposium will generate practical solutions to the key challenges impeding meaningful retirement planning and saving.

As Uganda marks its 61^st Independence anniversary therefore, it is important to reflect on national programmes and how inclusive they are.

Happy Independence Day!

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URBRA is Uganda’s retirement benefits regulatory authority